HR Succession: When the Cobbler s Children Have No Shoes
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1 HR Succession: When the Cobbler s Children Have No Shoes HR Executive Webinar Patti Johnson & Michael Peel with David Shadovitz, Editor of Human Resource Executive Magazine
2 Your hosts Patti Johnson - CEO of PeopleResults - Formerly CHRO for Accenture HR Services - Clients such as PepsiCo, Accenture, Microsoft, 7-Eleven, McKesson, Frito-Lay, and many others. - Instructor for SMU Executive Education - Featured as an expert in The New York Times, The Wall Street Journal, Working Mother, Human Resources Executive, SHRM, and is a regular expert for SUCCESS magazine. - First book, Make Waves will hit shelves in Spring 2014.
3 Your hosts Michael Peel - CHRO and Administrative Officer for Yale University - Former Executive Vice President, Human Resources and Global Business Services for General Mills - Fellow, Board Member, and Secretary Treasurer of the National Academy of Human Resources - Board Member and Chair of the Compensation and Management Development Committee for the Select Comfort Corporation
4 Today we ll discuss. Goals: Provide the business case for why CHRO succession is a priority Provide useful ideas for how to approach succession of top HR leaders Encourage you to take action Topics: Facts and research that tell the story Obstacles that get in our way Business benefits & keys to success Real-life experiences Managing the Executive Committee and the Board Lessons Learned & Considerations Q&A/Discussion 4
5 Facts that tell the Story* Only 36% of U.S. CHRO s surveyed gain their position through internal promotion within HR. 54% of CHROs were hired from the outside. In contrast, internal promotions to CEO and CFO were at 65% and 55% respectively. In Europe, only a quarter of CHROs were promoted internally within the function, compared to 72 % of CEOs and 39 % of CFOs. The top two methods for developing future top HR leaders were: Learning from external networks Staying focused on the business *Source: Cornell Advanced Center for Human Resource Studies,
6 Obstacles What gets in our way: Valuable skills within HR are different than top CHRO leadership skills. Career progression doesn t build needed business skills. Current CHRO may feel exposed identifying backup(s). HR leaders haven t built needed relationships and knowledge across the business. HR function isn t given needed attention. HR leader doesn t have an HR advisor on this issue like the other functions. We have Cobbler s Children syndrome. 6
7 Business readiness Boost in HR talent as you develop future candidates Cost savings with an internal candidate Organizational benefits when HR given same attention as other key roles, such as the CFO, CMO, CIO and CEO. Benefits to the business 7
8 A Few Keys to Success 8
9 Start Early - Start planning well in advance of the need. - Identify future CHRO s and top HR leaders early to create right opportunities. - Top talent will need to see potential early in their careers. 9
10 Forget traditional career paths. - Consider laterals across HR for maximum exposure. - Look beyond just roles and identify critical experiences to build capability, such as exposure to the Board, enterprise-wide leadership opportunities, or business immersion. - Create opportunities to build relationships across the business. - Encourage creative ways to learn and develop outside the 10 organization.
11 Connect the Dots Succession planning for top HR leaders only works when integrated with other talent processes and decisions. Development Performance Succession 11
12 Perspective: Remember the Top 2 The top two methods for developing future top HR leaders were: Learning via external networks Staying focused on the business *Source: Cornell Advanced Center for Human Resource Studies,
13 Real Life Experience - Succession at General Mills took place 5 years ago - Successor CHRO (Mike Davis) had been with company for 10 years Over-hired Diverse job assignments Broad exposure Viewed as fully ready Wide external network - Mike Davis elected by peers to National Academy of Human Resources in
14 Real Life Experience My View of Why Internal Candidates Fall Short: Human Resources viewed as upgrading opportunity - Turnaround - New CEO - Administrative vs. strategic OR Potential successor(s) perceived as: - Too narrow - Lacking important expertise - Having insufficient stature/credibility 14
15 Real Life Experience Developing a Ready Now Successor: Start with an aspirational standard - Better than not as good as Plug critical skill gaps: - Executive compensation - Senior search - Executive development/coaching - Succession planning - Change management - International Expose broadly to SLT and Board Tighten development cycle/make every move count 15
16 Q&A and Discussion 16
17 Thank you for joining us Patti Johnson Blog: Current at Michael Peel CHRO and Administrative Officer for Yale University David Shadovitz Editor at Human Resource Executive 17
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